November 14, 2017

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Rs 25Lakh advance can now be provided to central Govt. employees for buying or constructing new homes.

In a recent move aimed at giving housing sector a boost, the central government employees have been allowed for an advance of Rs 25lakh, at an interest of 8.50%, for building or buying a new home. The jump in the amount being provided has been massive, as the earlier limit was just Rs 7.5lakh, at interest slabs ranging between 6% to 9.5%. 

An Official from the Housing and Urban Development Ministry explained that if the same amount of loan is taken by a money lender, for a period of 20 years, the creditor would end up paying Rs 11lakh extra. This ‘House Building Advance’ scheme thus helps the central govt. employees to save up to Rs 11lakh.

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Image Source - Financial Express

Unlike the earlier times, the interest slab has now been fixed to 8.5% and will be up for revision every three years.  The house expansion amount has also been increased many folds, from 1.80lakh to 10lakh. Cost ceiling limit for a house being purchased or built has also been increased to 1crore form 30lakh. The new scheme allows spouses (central government employees) to apply for advance jointly, as well as separately. 


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